Today (January 26th), the nonferrous metals sector led the gains against the broader market trend, with the popular sector ETF—Huabao Nonferrous Metals ETF (159876)—seeing its intraday price surge by 5.02%, refreshing its record high since listing. The real-time turnover reached 142 million yuan, and within less than an hour after the market open, the current turnover had already surpassed the full-day turnover of the previous trading session.
Accompanying the fervent market activity, capital actively rushed to accumulate positions. As of the time of writing, the ETF recorded real-time net inflows of 109 million units! Extending the timeline, it has seen continuous capital inflows over the past 10 trading days, amassing a total of 569 million yuan!
Regarding constituent stocks, seven companies including Pangang Group Vanadium & Titanium & Resources, Tongling Nonferrous Metals Group, Baiyin Nonferrous Group, Hunan Gold Corporation Limited, Xingye Silver and Tin Group, Hengbang Shares, and Hunan Silver hit the daily 10% limit-up. Other stocks such as Zhongjin Gold and Guocheng Mining followed with significant gains. Among the heavyweight constituents, Shandong Gold and CMOC Group rose over 7%, while Zijin Mining Group gained more than 6%.
This "metal feast" is not a random occurrence. Industry insiders point out that it is driven by four key factors, which are systematically reshaping the pricing logic for nonferrous metals: 1. US Debt Cycle. The continuous rise in US debt and deficits has sparked global concerns about their sustainability and the credibility of the US dollar. Central banks of multiple countries are reducing their holdings of US Treasury bonds and increasing their gold reserves to promote diversification of reserve systems, thereby supporting stronger precious metal prices. 2. Structural Demand Drivers. The development of the AI industry and the accelerated global energy transition are generating incremental demand for industrial metals such as copper and aluminum. 3. Supply Chain Security. The current global supply chain landscape is shifting from emphasizing efficiency to prioritizing security—countries are increasing reserves of critical minerals, energy, and food to ensure their industrial security, which also boosts demand for commodities. 4. Changes in the Supply Cycle. Capital expenditure for major nonferrous metal varieties essentially peaked around 2011, followed by a prolonged period of contraction, leading to a significant output gap in the industry. Persistent constraints on the supply side continue to support industry prices.
Industry insiders believe the nonferrous metals rally is likely to continue. The current high-profitability state of the nonferrous metals industry may persist for a relatively long cycle. Driven by sustained new demand, the sector is gradually acquiring growth attributes and deserves a valuation reassessment. Furthermore, compared to their international peers, domestic nonferrous metal companies are significantly undervalued, yet their growth potential and core competitiveness are not inferior. Simultaneously, the continuous exploration and breakthroughs by domestic companies in core technology areas such as exploration, mining, and smelting have also made outstanding contributions to the global mining industry's development.
Notably, as of January 23rd, Huabao Nonferrous Metals ETF (159876) reached a new record high with a latest size of 1.892 billion yuan. Among the three ETFs in the market tracking the CSI Nonferrous Metals Index, it is the largest by size.
[The Nonferrous Metals Trend is Here, the "Super Cycle" is Unstoppable] Huabao Nonferrous Metals ETF (159876) and its linked fund (Class A: 017140, Class C: 017141) track an index that comprehensively covers industries such as copper, aluminum, gold, rare earths, and lithium, encompassing different cyclical phases like precious metals (safe-haven), strategic metals (growth), and industrial metals (recovery). This full-category coverage allows for better capture of the sector's overall beta movements.
Risk Warning: Huabao Nonferrous Metals ETF and its linked fund passively track the CSI Nonferrous Metals Index. The base date of this index is December 31, 2013, and it was published on July 13, 2015. The index's performance over the last five complete years is: 2020, +35.84%; 2021, +35.89%; 2022, -19.22%; 2023, -10.43%; 2024, +2.96%. The index's constituent stocks are adjusted according to its compilation rules, and its past performance does not indicate its future returns. The constituent stocks mentioned in this article are for illustrative purposes only; descriptions of individual stocks are not investment advice in any form and do not represent the holdings or trading动向 of any fund managed by the manager. The fund manager assesses this fund's risk level as R3-Medium Risk, suitable for investors with a Balanced (C3) or higher risk profile. Suitability matching opinions should be based on the selling institution's assessment. Any information appearing in this article (including but not limited to stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only, and investors are responsible for any independent investment decisions. Furthermore, any views, analyses, or forecasts in this article do not constitute investment advice of any kind to readers, and no responsibility is accepted for any direct or indirect losses arising from the use of this content. Fund investment carries risks; the past performance of a fund does not indicate its future performance, and the performance of other funds managed by the fund manager does not guarantee the performance of this fund. Invest carefully in funds.
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